State Tax Guide · Alabama · 2026
Alabama Income Tax: Complete Employee Guide (2026)
Understand the modeled Alabama withholding method, source-backed rates, deductions, and take-home pay examples for employees.
Does Alabama have income tax?
Alabama levies progressive state income-tax withholding on wages.
Alabama tax rates
Sourced progressive single-filer withholding rates range from 2% to 5%.
Encoded single-filer rates: 2%, 4%, 5%
Official source: https://www.revenue.alabama.gov/wp-content/uploads/2026/01/whbooklet.pdf
Take-home pay examples
These examples use the calculator engine for a single filer paid biweekly with a standard W-4 and no pre-tax deductions.
| Annual salary | Alabama withholding | Net annual | Net biweekly |
|---|---|---|---|
| $40,000 | $1,760 | $32,560 | $1,252.31 |
| $60,000 | $2,760 | $47,630 | $1,831.92 |
| $80,000 | $3,760 | $61,350 | $2,359.62 |
| $100,000 | $4,760 | $74,420 | $2,862.31 |
| $150,000 | $7,260 | $106,531 | $4,097.35 |
How to reduce Alabama tax withholding
Traditional 401(k) contributions and HSA contributions are available as modeled pre-tax inputs in the calculator. State-specific HSA conformity is not encoded as a dedicated data field, so check current Alabama guidance or consult a qualified tax professional before relying on HSA treatment.
The encoded default single-filer method includes a $4,000 standard deduction or pre-bracket deduction amount.
Key differences from federal withholding
Federal income-tax withholding is calculated separately using IRS Publication 15-T. Alabama withholding follows the encoded state method described above, with its own rates, deductions, and documented limitations. Local wage taxes, where supported, are separate from the state amount.
Alabama salary after taxes
Browse state-specific salary pages for common annual salaries from $40,000 to $200,000.
Calculate your personalized Alabama take-home pay.
Calculate your Alabama take-home →Frequently Asked Questions
Does Alabama have an income tax?
Alabama levies progressive state income-tax withholding on wages.
What is the Alabama income tax rate for 2026?
Alabama uses sourced progressive single-filer rates ranging from 2% to 5% for the modeled withholding path.
How much Alabama tax on $75,000?
For the modeled default single-filer path, estimated Alabama withholding on a $75,000 salary is $3,510 per year, or $135.00 per biweekly paycheck.
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